Skip Ribbon Commands
Skip to main content

Market Commentary

​​​Weekly Retail & Leisure News - 15​​ August​​​, 2016

Household spending still strong despite Brexit vote

July’s BRC sales data show no sign of a slowdown in household spending following the EU referendum. The value of online and high street sales rose at the fastest pace for six months in the four weeks to July 30. The annual growth LFLs value jumped from -0.5% in June to 1.1% in July while total sales growth rose from 0.2% to 1.9%, boosted by July’s good weather and heavy discounting by retailers. Especially strong was the spending by foreigners on luxury items, related to the weaker pound following the referendum.
British supermarket sales have dipped below £100bn for the first time since 2010, as the price war with discounters Aldi and Lidl continues. The major grocers’ revenues dropped by 3.1% to £99bn in Q2, as price deflation in the sector continues to impact sales values. New competition from online retailers such as Amazon’s launch of Amazon Fresh will serve to put additional pressure on the grocery market in the UK.

In other news, furniture chains DFS and ScS have both reported positive sales. DFS shares jumped to 14.5% after announcing total sales were up 4.8% in the six months to the end of July, with LFLs up 0.2%. The company claimed that any adverse impact from June’s Brexit vote is ‘likely to be limited’. ScS, meanwhile, reported a 14.8% jump in LFL sales in the year to July 30, and expect profit expectations to remain unchanged despite the Brexit result.

Thank You!

A representative will be in contact with you shortly.

Sign up

If you would like to read more of our market commentary and gain further insight into the UK retail and leisure market, sign up for our weekly newsletter, delivered to your inbox every Monday afternoon. ​Preview email

​Contact us​​​​​​​​​​​​​​​​​​​​